The Really Useful Group Limited
Annual Report and Financial Statements
For the year ended 30 June 2023
Company Registration No. 01240524 (England and Wales)
The Really Useful Group Limited
Company Information
Directors
Lady Lloyd Webber
M Lowes
L I Chapman
J S McKnight
Company number
01240524
Registered office
6 Catherine Street
London
WC2B 5JY
Auditor
Moore Kingston Smith LLP
Charlotte Building
17 Gresse Street
London
W1T 1QL
Business address
6 Catherine Street
London
WC2B 5JY
Bankers
Handelsbanken plc
2nd Floor
1 Kingsway
London
WC2B 6AN
The Really Useful Group Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 33
The Really Useful Group Limited
Strategic Report
For the year ended 30 June 2023
Page 1
The directors present the strategic report for the year ended 30 June 2023.
The directors, in preparing this strategic report, have complied with s414C of the Companies Act 2006.
Introduction and principal activities
The company is wholly-owned by Lord Lloyd Webber and part of the wider Really Useful Group Investments Limited group.
The company's principal activities include the development and exploitation of the copyrights and other rights which it owns in musical and dramatic works. It markets these rights internationally through productions, recordings, music publishing, merchandising, television, video and films.
The company’s activities are expected to continue for the foreseeable future.
Operating and Business Review
Turnover increased in the current year by 64.8% to £37.9m (2022: £23.0m) as the company benefited from a full year of trading.
The profit for the year, after taxation, amounted to £1,402,723 (2022: loss £1,929,578).
The balance sheet shows net assets of £13,542,809 (2022: £12,140,086).
Production and licensing showed a significant increase in activity compared to the previous two financial years, which were impacted so significantly by the Coronavirus (COVID-19) pandemic across all the territories in which the company operates.
The company benefited from a number of very successful productions in the financial period, including Phantom of the Opera Australia, the long running Starlight Express Bochum, Japanese productions of Phantom of the Opera and Cats as well the continued success of the US tours of Jesus Christ Superstar and Cats.
However, the significantly higher costs of staging Phantom of the Opera on Broadway, including the impact of COVID-19 safety measures, resulted in the show being unable to run profitably. After a 35-year run, an announcement was made in September 2022 that the show would be closing. Following this announcement, the show achieved record breaking box office in the run up to the final performance on 16th April 2023. The higher royalties and profit shares received over this period positively impacted the company’s results.
The results from these productions offset the costs incurred due to the closure of Bad Cinderella on Broadway.
Key performance indicators
The company considers its key performance indicators to be:
From the list above, the most important drivers of our business are attendance (2023: 4.63m; 2022: 3.74m) and box office takings (2023: £304.7m; 2022:£210.4m). These figures represent first class productions, which account for the majority of the company’s turnover, and do not include any data from China.
The Really Useful Group Limited
Strategic Report (Continued)
For the year ended 30 June 2023
Page 2
Future developments and events after the balance sheet date
The directors are optimistic that the continued development and exploitation of the company’s copyrights and other rights will result in strong trading results next year.
In August 2023, the company repaid its term loan and entered into a new 3-year £7m revolving credit facility agreement with Handelsbanken plc.
Principal risks and uncertainties
The company holds various copyrights and other rights to musical and dramatic works. There is a risk that the popularity of these copyrights and other rights may diminish over time and that the company may not be able to exploit them in the same manner as previous years. This risk is considered when the company is planning the performance schedules of various productions and the locations around the world in which the production will play. The company's experience of staging productions is used to ensure that rights are exploited across territories in the best way so as to introduce new audiences to productions and to ensure longevity in the rights held.
Financial risks
The company's activities expose it to a number of financial risks including credit risk, foreign exchange risk and liquidity risk. The principal risks and uncertainties that the company faces are discussed below.
Credit risk
Where the company offers credit to customers, we mitigate the risk by working only with established, reputable companies, running credit risk assessments on suppliers and seeking advance payments where appropriate. The Board does not consider this to be a significant risk.
Foreign exchange risk
The company operates in a number of countries around the world and is therefore exposed to movements in currency exchange rates. The directors consider that the level of trading in overseas currencies does not warrant taking out hedges to manage any fluctuations in exchange rates. However, the company's treasury function manages the risk by disposing of foreign currency balances on a regular basis.
Liquidity risk
In order to ensure that sufficient funds are available for ongoing operations and future developments, the company uses a mixture of its own cash balances and undrawn revolving credit facilities. The company monitors its liquidity position closely through the regular use of cash flows forecasts.
Going concern
After making reasonable enquiries and considering the trading forecasts of the company, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least twelve months from the signing of these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Further details regarding the adoption of the going concern basis can be found in note 1.3 of the financial statements.
Environment
The company recognises the importance of its environmental responsibilities which are covered in more detail in the S172 statement below.
The Really Useful Group Limited
Strategic Report (Continued)
For the year ended 30 June 2023
Page 3
Section 172 (1) statement
Section 172 (1) (a) to (f) of the Companies Act 2006 requires that directors must act in a way they consider in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:
the likely consequences of any decision in the long term
The board meets regularly to discuss and make decisions on matters of strategic importance to the business, to promote the long-term success of the company and to consider the likely long-term impact of any such decisions.
the interests of the company’s employees
The enthusiasm, creativity, hard work and commitment of the company’s employees form the backbone of our business. The company has a number of policies in place to ensure the well-being of staff and provides training across a wide range of areas in order for them to develop and grow. The company operates a management structure that ensures staff are aware of strategic decisions and current performance and likewise provide a forum for matters arising from staff to be escalated and dealt with appropriately.
the need to foster the company’s relationships with suppliers, customers and others
The company works hard to establish and maintain strong relationships with its suppliers and customers. Representatives of the company are in contact regularly with these stakeholders to develop and strengthen these relationships for the benefit of the company.
the impact of the company’s operations on the community and the environment
The company is committed to enhancing and having a positive impact upon local communities where our productions take place. Therefore, the company engages regularly with local presenters and producers. The company also actively promotes theatre and donates to various charities.
The company considers the impact of its decision on the environment. We aim not to send any waste to landfill, have phased out the use of single use plastics wherever possible and partner with green energy suppliers. We actively encourage our office to show initiative to reduce waste, including the sorting and recycling of waste, donating equipment and used technology and putting drinking water taps in place to reduce the use of single use plastic. As much as possible we partner with green suppliers whose products are eco-friendly and reduce the impact on the environment.
the desirability of the company maintaining a reputation for high standards of conduct
The company expects the highest standards of conduct from its employees, customers and suppliers with which it engages.
The company complies with all relevant legislation, including those targeted at preventing discrimination, equal opportunities, anti-bribery, health and safety and dignity at work. Such principles are embedded through the company’s policies.
the need to act fairly between members of the company
The Board engages regularly with the shareholder about the affairs of the company and seeks to take decisions in the best interests of the shareholder.
L I Chapman
Director
26 February 2024
The Really Useful Group Limited
Directors' Report
For the year ended 30 June 2023
Page 4
The directors present their annual report and financial statements for the year ended 30 June 2023.
Principal activities
Details of the principal activities, review of the business, principal risks and uncertainties, financial risk management objectives and policies and future developments can be found in the strategic report on pages 1 to 2 and form part of this report by cross-reference.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid (2022: £nil). The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Lady Lloyd Webber
M Lowes
L I Chapman
(Appointed 1 November 2023)
J S McKnight
(Appointed 4 December 2023)
C Farmer
(Resigned 24 February 2023)
J L Koravos
(Resigned 30 April 2023)
J C Quillan
(Resigned 4 December 2023)
Auditor
In accordance with the company's articles, a resolution proposing that Moore Kingston Smith LLP be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
L I Chapman
Director
26 February 2024
The Really Useful Group Limited
Directors' Responsibilities Statement
For the year ended 30 June 2023
Page 5
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Really Useful Group Limited
Independent Auditor's Report
To the Members of The Really Useful Group Limited
Page 6
Opinion
We have audited the financial statements of The Really Useful Group Limited (the 'company') for the year ended 30 June 2023 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 June 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
The Really Useful Group Limited
Independent Auditor's Report (Continued)
To the Members of The Really Useful Group Limited
Page 7
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
The Really Useful Group Limited
Independent Auditor's Report (Continued)
To the Members of The Really Useful Group Limited
Page 8
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s or the parent company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
The Really Useful Group Limited
Independent Auditor's Report (Continued)
To the Members of The Really Useful Group Limited
Page 9
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Mark Twum-Ampofo (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
19 March 2024
Chartered Accountants
Statutory Auditor
Charlotte Building
17 Gresse Street
London
W1T 1QL
The Really Useful Group Limited
Statement of Comprehensive Income
For the year ended 30 June 2023
Page 10
2023
2022
Notes
£
£
Turnover
3
37,867,501
22,973,698
Cost of sales
(25,922,166)
(15,338,256)
Gross profit
11,945,335
7,635,442
Administrative expenses
(10,365,482)
(8,332,282)
Other operating income
760,667
398,104
Exceptional item
4
(2,383,455)
Operating profit/(loss)
5
2,340,520
(2,682,191)
Interest receivable and similar income
9
23,976
307,259
Interest payable and similar expenses
10
(441,792)
(415,703)
Fair value gains and losses
11
(77,563)
147,171
Profit/(loss) before taxation
1,845,141
(2,643,464)
Tax on profit/(loss)
12
(442,418)
713,886
Profit/(loss) for the financial year
1,402,723
(1,929,578)
The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.
The Really Useful Group Limited
Balance Sheet
As at 30 June 2023
Page 11
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
13
70,058
130,265
Tangible assets
14
19,493,569
20,094,397
Investments
15
2,312,385
2,312,385
21,876,012
22,537,047
Current assets
Debtors
16
17,240,383
17,755,078
Cash at bank and in hand
7,154,247
311,920
24,394,630
18,066,998
Creditors: amounts falling due within one year
17
(31,540,104)
(16,910,178)
Net current (liabilities)/assets
(7,145,474)
1,156,820
Total assets less current liabilities
14,730,538
23,693,867
Creditors: amounts falling due after more than one year
19
(1,187,729)
(11,553,781)
Net assets
13,542,809
12,140,086
Capital and reserves
Called up share capital
22
100,000
100,000
Other reserves
260,000
260,000
Profit and loss reserves
13,182,809
11,780,086
Total equity
13,542,809
12,140,086
The financial statements were approved by the board of directors and authorised for issue on 26 February 2024 and are signed on its behalf by:
L I Chapman
Director
Company Registration No. 01240524
The Really Useful Group Limited
Statement of Changes in Equity
For the year ended 30 June 2023
Page 12
Share capital
Capital contribution reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 July 2021
100,000
260,000
13,709,664
14,069,664
Year ended 30 June 2022:
Loss and total comprehensive income for the year
-
-
(1,929,578)
(1,929,578)
Balance at 30 June 2022
100,000
260,000
11,780,086
12,140,086
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
1,402,723
1,402,723
Balance at 30 June 2023
100,000
260,000
13,182,809
13,542,809
The Really Useful Group Limited
Notes to the Financial Statements
For the year ended 30 June 2023
Page 13
1
Accounting policies
Company information
The Really Useful Group Limited ("the company") is a private company limited by shares incorporated in England and Wales. The registered office is 6 Catherine Street, London, WC2B 5JY.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention as modified by the recognition of certain financial assets and liabilities at fair value. The principal accounting policies adopted are set out below.
1.2
Exemptions for qualifying entities under FRS 102
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
The Really Useful Group Limited is a wholly owned subsidiary of Really Useful Group Investments Limited and the results of The Really Useful Group Limited are included in the consolidated financial statements of Really Useful Group Investments Limited which are available from Companies House, Crown Way, Cardiff, CF14 3UZ.
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 14
1.3
Going concern
The directors have prepared projections and cash flow forecasts for a period of 12 months from the date of approval of these financial statements, which indicate that the company will continue to trade profitably and generate cash from trading.true The directors are committed to continuing to grow the business for ongoing long-term success.
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
1.4
Turnover
Turnover comprises the amounts receivable, exclusive of Value Added Tax, for goods and services and for royalties from theatre, video and film productions, records, publishing, stock and amateur licensing and merchandising.
Certain royalty revenues from record, music publishing, stock and amateur and merchandising licences and film are recognised once they can be reliably determined, usually once a royalty statement has been received from a third party. This is consistent with industry practice.
All other revenues are recognised on a right to consideration basis.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Copyrights
10 years straight line
Copyrights
Expenditure incurred in relation to the establishment or acquisition of copyrights is recorded at cost less amortisation. The copyrights are being amortised over 10 years.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:
Freehold land
Not depreciated
Freehold buildings
15 - 50 years straight line
Fixtures and fittings
3 - 10 years straight line
Motor vehicles
4 years straight line
Theatre sets
3 years straight line
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 15
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
Investment in theatrical productions consist of non-recourse loans advanced to a production which are repayable out of the profit of the production. These investments are initially measured at fair value which is normally the transaction price. In general fair values subsequent to initial investment cannot be measured reliably so investments in theatrical productions are subsequently measured at cost less impairment.
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 16
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets comprise loan investments into theatrical productions. Such loans are repaid from funds generated by the profitable running of the productions; are recoverable only to the extent of the net assets available to the production and in the event of early closure of the production before the loan is repaid the company has no further claim against the production; and the timing of the repayments is at the reasonable discretion of the production. Subsequent to repayment the company is entitled to a fixed share of the profit of the production.
There is no reliable measure for the fair value of such instruments which are therefore measured at amortised cost.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 17
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Derivatives
Derivatives, including interest rate caps, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate derivatives.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 18
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.18
The company and its related companies utilise the allocation of group relief whereby current year tax losses from one company will be surrendered to a company with current year taxable profits. The amount surrendered from the loss-making company will not exceed the amount of the profit making company's taxable profits.
To the extent that losses are surrendered to shelter profits recognised in the accounts, the profit-making company will utilise the tax loss surrendered and book an amount equivalent to the tax saving in its intercompany account.
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 19
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Investments in theatre productions
The investments relate to non-recourse loans to companies involved with theatre productions either directly or indirectly. The directors are required to make a determination at each year end of the likelihood that the productions will recoup and retain the company's investment monies. Forecasting the future performance of a theatrical production is subject to a significant amount of uncertainty, being affected by future estimated box office receipts and running costs.
Joint ventures
Theatrical productions are commonly held within special purpose vehicles. The management and control of those SPV's is commonly split between multiple producers and is governed by the terms of a a co-production agreement. In determining whether a production SPV should be classified as a subsidiary, joint venture or non-participating interest the company considers that the terms of the co-production agreement are generally the key determinant of control. In many cases ownership of the equity share capital or relative ownership of that capital does not equate to the degree of control the company is able to exercise over the SPV or the company's entitlement to the profits of the SPV.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Revenue recognition
Certain royalties revenues from record, music publishing, stock and amateur and merchandising licenses along with profits from productions and investments are recognised once they can be reliably determined, usually once a royalty statement has been received from a third party. Management accrue royalty income to the extent that the value of the royalty statement can be reliably determined, either on receipt of the royalty statement or from accurate reporting.
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 20
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Theatre productions
32,333,275
19,160,836
Record and music publishing
1,681,359
1,752,173
Merchandising
2,842,318
1,286,702
Film production
1,010,549
773,987
37,867,501
22,973,698
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
4,948,901
3,053,398
USA and Canada
16,921,069
8,199,816
Europe
4,866,807
5,354,592
Japan
5,746,871
3,954,011
Australia and South East Asia
5,383,853
2,411,881
37,867,501
22,973,698
2023
2022
£
£
Other significant revenue
Interest income
23,976
33,945
4
Exceptional item
2023
2022
£
£
Expenditure
Provision against amounts due from group undertakings and associates
-
1,295,955
Impairment of investments in theatre production
-
1,087,500
-
2,383,455
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 21
5
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging:
£
£
Exchange losses
110,962
138,544
Depreciation of owned tangible fixed assets
641,269
707,738
Loss on disposal of tangible fixed assets
822
2,518
Amortisation of intangible assets
60,207
60,207
Operating lease charges
99,739
89,744
Other operating income includes management fees receivable of £727,614 (2022: £398,104)
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Development and exploitation of theatrical and other rights
61
55
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
4,852,616
4,015,926
Social security costs
608,774
481,741
Pension costs
476,662
248,598
5,938,052
4,746,265
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 22
7
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
43,200
36,000
Audit of the financial statements of other group companies
58,400
59,200
101,600
95,200
For other services
Staturory accounts preparation
32,600
27,600
Taxation compliance services
28,380
25,500
Internal audit services
2,250
3,800
63,230
56,900
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
1,460,710
1,237,599
Company pension contributions to defined contribution schemes
117,476
58,618
1,591,917
1,296,217
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 4).
Remuneration disclosed above include the following amounts paid to the highest paid director:
Remuneration for qualifying services
390,645
290,342
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 23
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
23,976
2,511
Interest receivable from group companies
31,632
Total interest revenue
23,976
34,143
Income from fixed asset investments
Income from group undertakings
273,116
Total income
23,976
307,259
10
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
441,792
415,703
11
Fair value gains and losses
2023
2022
£
£
Fair value losses on financial instruments
Change in the value of financial liabilities held at fair value through profit or loss
(77,563)
147,171
12
Taxation
2023
2022
£
£
Current tax
Foreign current tax on profits for the current period
23,754
Deferred tax
Origination and reversal of timing differences
138,664
(852,185)
Adjustment in respect of prior periods
280,000
138,299
Total deferred tax
418,664
(713,886)
Total tax charge/(credit)
442,418
(713,886)
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
12
Taxation
(Continued)
Page 24
The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit/(loss) before taxation
1,845,141
(2,643,464)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 20.50% (2022: 19.00%)
378,254
(502,258)
Tax effect of expenses that are not deductible in determining taxable profit
7,776
476,872
Tax effect of income not taxable in determining taxable profit
(14,436)
(124,228)
Adjustments in respect of prior years
280,000
138,299
Fixed asset differences
122,581
(13,732)
Other permanent differences
(377)
Deferred tax adjustments
(366,445)
(688,839)
Foreign tax credits
17,140
Remeasurement of deferred tax charge for change in tax rates
91,003
Withholding tax adjustment in relation to prior years
(73,078)
Taxation charge/(credit) for the year
442,418
(713,886)
13
Intangible fixed assets
Copyrights
£
Cost
At 1 July 2022 and 30 June 2023
1,232,291
Amortisation and impairment
At 1 July 2022
1,102,026
Amortisation charged for the year
60,207
At 30 June 2023
1,162,233
Carrying amount
At 30 June 2023
70,058
At 30 June 2022
130,265
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 25
14
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Motor vehicles
Theatre sets
Total
£
£
£
£
£
Cost
At 1 July 2022
21,525,776
1,954,191
109,903
142,237
23,732,107
Additions
43,162
43,162
Disposals
(9,107)
(9,107)
At 30 June 2023
21,525,776
1,988,246
109,903
142,237
23,766,162
Depreciation and impairment
At 1 July 2022
1,741,999
1,660,905
96,166
138,640
3,637,710
Depreciation charged in the year
406,780
217,155
13,737
3,597
641,269
Eliminated in respect of disposals
(6,386)
(6,386)
At 30 June 2023
2,148,779
1,871,674
109,903
142,237
4,272,593
Carrying amount
At 30 June 2023
19,376,997
116,572
19,493,569
At 30 June 2022
19,783,777
293,286
13,737
3,597
20,094,397
15
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
25
564
564
Investments in joint ventures
26
1
1
Investments in theatre productions
2,311,820
2,311,820
2,312,385
2,312,385
Movements in fixed asset investments
Shares in group undertakings
Theatre productions
Total
£
£
£
Cost or valuation
At 1 July 2022 & 30 June 2023
565
2,311,820
2,312,385
Carrying amount
At 30 June 2023
565
2,311,820
2,312,385
At 30 June 2022
565
2,311,820
2,312,385
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 26
16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
167,531
429,677
Amounts owed by group undertakings
12,133,246
10,554,785
Other debtors
595,797
862,231
Prepayments and accrued income
3,630,288
5,056,200
16,526,862
16,902,893
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 21)
713,521
852,185
Total debtors
17,240,383
17,755,078
Amounts due from group undertakings are interest free and repayable on demand other than a loan from The Really Useful Company Inc (Note 18).
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
18
9,280,000
570,000
Other borrowings
18
1,216,337
Trade creditors
1,098,334
497,314
Amounts due to group undertakings
9,088,184
2,773,399
Other taxation and social security
159,527
Other creditors
1,017,987
871,002
Accruals and deferred income
9,839,262
12,038,936
31,540,104
16,910,178
Amounts due to group undertakings are interest free and repayable on demand other than a loan from The Really Useful Company Inc. (Note 18).
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 27
18
Loans and overdrafts
2023
2022
£
£
Bank loans
9,280,000
9,850,000
Loans from group undertakings
2,404,066
2,273,781
11,684,066
12,123,781
Payable within one year
10,496,337
570,000
Payable after one year
1,187,729
11,553,781
Bank loans of £9,280,000 represent the balance owing to Handelsbanken plc under a secured, amortising loan agreement entered into in 2018 by The Really Useful Group Limited. This loan agreement also provided the group with a £4,000,000 overdraft which was not drawn at the year end. The loan agreement matured in August 2023 and was repaid in full. Concurrently, The Really Useful Group Limited entered into a new, three year £7,000,000 revolving credit facility and £1,500,000 overdraft with Handelsanken plc. The new facility is secured via a charge over the freehold land and buildings with a net book value of £19,376,997 (2022: £19,783,777) and a group composite guarantee over the assets of the group and carries an interest rate of 1.7% over SONIA.
In the year ended 30 June 2021, The Really Useful Company Inc. issued a 3 year loan of $1.5m to the company. The loan is repayable in January 2024 and the rate of interest is 1.5%. In the year ended 30 June 2022 a further $1.5m was drawn down on the same terms. This loan is repayable in August 2025. Both loans have been repaid in full in August 2023.
19
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
18
9,280,000
Other borrowings
18
1,187,729
2,273,781
1,187,729
11,553,781
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 28
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
476,662
248,598
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
At the year end pension contributions of £nil (2022: £37,977) remained outstanding and have been included within "Other Creditors".
21
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Assets
Assets
2023
2022
Balances:
£
£
Capital allowances in excess of depreciation
396,742
566,650
Short term timing differences
-
6,089
Losses
316,779
279,446
713,521
852,185
2023
Movements in the year:
£
Asset at 1 July 2022
(852,185)
Charge to profit or loss
138,664
Asset at 30 June 2023
(713,521)
The deferred tax assets set out above are expected to reverse within 12 - 120 months and relate to decelerated capital allowances, the utilisation of tax losses against future expected profits of the same period, and other short-term timing differences.
22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 5p each
2,000,000
2,000,000
100,000
100,000
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
22
Share capital
(Continued)
Page 29
The capital contribution reserve arose on the waiver of a loan from a fellow group undertaking as part of a group wide refinancing in a previous period.
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 30
23
Related party transactions
Transactions with related parties
Lord Lloyd Webber advances
Lord Lloyd Webber is the ultimate controlling shareholder of the company. During the year the company incurred royalty costs of £13,752,311 (2022: £5,344,758) due to Lord Lloyd Webber. At the year end £1,171,626 (2022: £44,067) was due to Lord Lloyd Webber in respect of these royalties. The directors consider these transactions have been entered into at arm's length on normal commercial terms.
During the year the company made sales of £6,412 (2022: £13,248) to, and purchases of £19,344 (2022: £25,288) from Escaway Limited, a related party by virtue of common control in respect of recharges. At the year end, the company owed £nil to (2022: £5,907) Escaway Limited.
Payments to third parties
During the year the company made purchases of £149,867 (2022: £147,652) from LW Theatres Group Limited, a related party by virtue of common control. At the year end, the company owed £nil to (2022: £nil) LW Theatres Group Limited.
During the year the company made sales of £363,761 (2022: £500,918) to LW Theatres Group Limited, a related party by virtue of common control. At the year end, the company was owed £44,046 (2022: £63,281) by LW Theatres Group Limited.
During the year the company made sales of £nil (2022: £97) to The Other Songs Limited, a related party by virtue of common control.
During the year, the company made purchases of £122,219 (2022: £89,734) from Lady Lloyd Webber in respect of rent payments. At the year end, the company owed £nil (2022: £nil) to Lady Lloyd Webber.
Joint venture undertakings
During the year, income from joint venture undertakings totalled £11,966,034 (2022: £1,834,946). At the year end, the group was owed £527,082 (2022: £162,761) by joint venture undertakings.
The group made purchases on behalf of joint venture undertakings during the year of £526,881 (2022: £nil). The group has assessed the recoverability of the amounts due from joint venture undertakings and based on this assessment, a provision of £526,881 has been recognised in the profit and loss account for the year.
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 31
24
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
239,445
239,744
Between two and five years
494,685
726,205
734,130
965,949
Lessor
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2023
2022
£
£
Within one year
5,000
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 32
25
Subsidiaries
Details of the company's subsidiaries at 30 June 2023 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office key
shares held
Direct
Indirect
Angel of Music Limited
1
Theatre producer
Ordinary
100.00
Cinders London Limited
1
Theatre producer
Ordinary
100.00
Cinders Production Company Limited
1
Theatre producer
Ordinary
100.00
Cinders Production Inc
2
Theatre producer
Ordinary
100.00
Company on Stage Limited
1
Theatre producer
Ordinary
100.00
Golgotha Limited
1
Dormant
Ordinary
100.00
Jacob & Sons Limited
1
Film production
Ordinary
100.00
Really Useful Films Limited
1
FIlm production
Ordinary
100.00
Really Useful Productions Europe Limited
3
Non-trading
Ordinary
100.00
Really Useful Touring Inc
4
Theatre producer
Ordinary
100.00
SOR Productions UK Limited
1
Theatre producer
Ordinary
100.00
The Opera Ghost Limited
1
Film production
Ordinary
100.00
The Really Useful Broadway Inc
4
Theatre producer
Ordinary
100.00
The Really Useful Broadway Limited
1
Theatre producer
Ordinary
100.00
The Really Useful Company Inc
4
Theatre producer
Ordinary
100.00
The Really Useful Company Limited
1
Dormant
Ordinary
100.00
The Really Useful Film Company Limited
1
Film production
Ordinary
100.00
The Really Useful Record Company Limited
1
Dormant
Ordinary
100.00
The Really Useful Theatre Company Inc
4
Theatre producer
Ordinary
100.00
The Really Useful Theatre Company Limited
1
Theatre producer
Ordinary
100.00
U-Cast Limited
1
Dormant
Ordinary
100.00
Registered Office addresses:
1
6 Catherine Street, London, United Kingdom, WC2B 5JY
2
c/o Wagner Johnson Productions, 130 West 42nd Street, New York, United States of America, NY 10036
3
Commercial House, Millbank Business Park, Lucan, Co. Dublin, K78 X5W6
4
c/o Sauvigne & Company, LLP, Certified Public Accountants, 25 S. Service Road - Suite 100, Jericho, United States of America, NY 11753
The Really Useful Group Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 33
26
Joint ventures
Details of the company's joint ventures at 30 June 2023 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office key
shares held
Direct
Indirect
Amigos Para Siempre Limited
1
Theatre producer
Ordinary
50.00
Cinders Broadway Limited Partnership
2
Theatre producer
Investor profit share entitlement
35.28
Phantom Productions London Limited
3
Theatre producer
Ordinary
55.00
SOR Broadway Limited Partnership
4
Theatre producer
Investor profit share entitlement
59.06
The Phantom Company Partnership
5
Theatre producer
Investor profit share entitlement
27.00
Registered Office addresses:
1
6 Catherine Street, London, United Kingdom, WC2 5JY
2
c/o Wagner Johnson Productions, 130 West 42nd Street, New York, United States of America, NY 10036
3
1-2 Bedford Square, London, United Kingdom, WC1B 3RB
4
230 West 41st Street, Suite 1703, New York, United States of America, NY 10036
5
1650 Broadway, Suite 800, New York, United States of America, NY 10019
27
Ultimate controlling party
The immediate parent company is Really Useful Holdings Limited, a company incorporated in England and Wales. Its registered address is 6 Catherine Street, London, WC2B 5JY.
The ultimate parent company and the parent company of the smallest and largest group for which group accounts are prepared and of which the company is a member is Really Useful Group Investments Limited, a company incorporated in England and Wales. Its registered address is 6 Catherine Street, London, WC2B 5JY. A copy of the group accounts of Really Useful Group Investments Limited may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.
The ultimate controlling party is Lord Lloyd Webber, who is the owner of the ultimate parent company.
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